Open and closed analyst briefings: An intraday perspective

Abstract: This study examines the role of analyst briefings in the Australian share market, an area that has come under increased regulatory scrutiny. We identify the population of disclosed analyst briefings between 1999 and 2008, and analyse intraday ASX pricing data around the analyst briefing and contemporaneous earnings announcement events. Using abnormal trading activity as a proxy for information disclosure and a unique measure of informed trading, we make a number of interesting findings. Overall, we find that closed briefings allow earlier price discovery than open briefings and without creating any evidence of profitable informed trading. The case for additional regulation is not supported.